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'The Osbournes,' Phish, And Elvis Presley Enterprises Are Among Those Steadily Rolling Out Branded Products
July 6, 2002 - Billboard
by Steve Traiman

Retail sales of licensed goods based on recording-industry personalities and celebrities and resulting royalties were one of the bright spots of last year, as the overall licensing market was down about 4.4%.

"In the case of Licensing 2002 [held June 11-13 at Javits Convention Center in New York], there is growing evidence that music celebrities with licensing programs are using the show as their platform to licensees, retailers, and promotional partners," GM Diane Stone says of expo producer Advanstar Communications.

Charles Riotto, president of show sponsor International Licensing Industry Merchandisers' Assn. (LIMA), adds: "Music is such an important part of our culture that an increasing number of musical acts take advantage of the opportunity to provide their fans with creative merchandise." At this year's show, Elektra's Phish became one of the first bands to take a booth to promote its Phish Dry Goods; Epic/Sony trio 3LW signed autographs at its Global Icons licensing rep's booth; Kim Carnes debuted her new line of self-conceived greeting cards, and the product line Annette Funicello, America's Sweetheart was launched through TradeMarketing Services. Elvis Presley Enterprises made the biggest impact with a potent array of programs built around the 25th anniversary of his death, and MTV's The Osbournes easily had the largest array of licensed merchandise for a newcomer via Signatures Network (Billboard, June 15).

Estimated licensing royalty revenue from the music/video product category was 1.6% of the total $5.6 billion in the annual 2001 LIMA Harvard/Yale industry study. The almost $85 million was a 36% increase from the prior year's $62.5 million, translating into $1.6 billion in retail sales of licensed goods.

Why 'Do the Show'?

Elektra product development manager Kelly Longfield recalls that Phish debuted in 1983 and launched its own Dry Goods merchandise entity in 1988. The band signed with Elektra in 1991, and of its 11 albums, A Live One is platinum and five are gold. Farmhouse, released in 2000, is the most recent studio album, and the Live Phish series (the current live-album release program) retails through Phish Dry Goods for $20 (double-CD) and $23 (triple-CD). "Phish has prided itself on being ahead of the trend, and we're interested in the possibility of finding other licensees," she notes. "It's been an exciting show, with great recognition for the band and interest for calendars, action figures, and hats, among other categories."

Elvis & Osbournes ARE Hot

As the August silver anniversary of his death approaches, Presley has never been hotter in the licensing arena, Elvis Presley Enterprises CEO Jack Soden notes. At Bertelsmann, RCA Records is readying the Elv1s 30 #1 Hits CD for release with a unique wrinkle: A new remix of "A Little Less Conversation" hit No. 1 on the U.K. charts and will be released in the U.S. soon. If it tops The Billboard Hot 100, RCA will add the single and make the CD 31 #1 Hits. Bertelsman's Gruner + Jahr USA magazine division will release Elvis, Then & Now, the only authorized "bookazine" produced with special access to Graceland's 40,000-plus photo-library archives. Gruner + Jahr senior VP Dan Rubin says, "It will include a complimentary CD with 'Heartbreak Hotel' and a rare version of 'In the Ghetto' as a collectible bonus." Also accessing the Graceland archives is Universal Studios Home Entertainment, for the July 30 DVD/VHS release of Elvis: His Best Friend Remembers. The collectible tribute from real-life best buddy "Diamond Joe" Esposito as a DVD bonus has a music video of "Cry Like Memphis" by Tamara Walker.

The popularity surrounding The Osbournes is also creating a merchandising bonanza. Signatures Network licensing and marketing VP Matt Hautau says, "I've never seen anything take off like the phenomenon of MTV's The Osbournes. They're as big as any property we've ever had, and with MTV just confirming a second season, the current 50-plus licensees should increase appreciably." He notes that rocker Ozzy and his son are both big gamers, so an interactive-game deal is in the works.

Signatures' newest artist push is for country superstar Reba McEntire, with her added success on Broadway and the big screen. Hautau says Signatures already has the Danbury Mint doing a collectible vinyl doll and is talking with Kmart, among other major retailers, for a McEntire lifestyle collection.

© 2002 BPI Communications